How do I record my adjusting entries on the trial balance for the Leases Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs for 6 years with an implicit interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjusting entries.

This is the advise from my instructor, but not sure how to apply it to the trial balance

Based on my suggested answers, the only question I have is for the last entry to record the capital lease. See below: I know you have recorded 101,583.84.

Also, ensure you account for the incorrect expensing of the $20K to back out.